Economy of Punjab

Punjab is famous for its agriculture, livestock, forestry, industries, minerals, tourism, all together they constitute Punjab’s economy.

Punjab’s economy is mainly agriculture based and has a low industrial output. The deficiency of the basic minerals which includes fuels is the major cause for poor industrial progress.

Punjab is famous for its huge production of wheat. The agro-based industries includes food products, beverages, cotton, wood and paper. The second important segment of Punjab’s economy is the livestock. It is one of the largest producers in India.

The third important segment is the wildlife and forestry. It attracts tourists and hence enriches Punjab’s economy. For Punjab forest and various animal products earns revenue

Industry of course form an important part of Punjab’s economy but there are not many outstanding prospects in this field due to several unavoidable obstacles.

Minerals and energy resources also contribute to Punjab’s economy to a very less extend .  Banking, Finance, Tourism and Real Estates are other important segments. Punjab’s economy is mostly dependent upon the agricultural sector. There is effective implementation of modern techniques in this field. The future towards betterment and the prospects are high. 


Punjab is world famous for its agriculture. High percentage of land is cultivated in Punjab . High agricultural production Punjab is because it is free from physical handicaps. The shortage of rainfall has been compensated by irrigation facilities. 

  • The chief products of agriculture are wheat, maize, rice and bajra.
  • Wheat dominates the production of crop . The cultivation of rice and bajra is restricted to certain regions only.
  • Rice is an important agriculture of Gurdaspur, Amritsar and Kapurthala districts .
  • Cotton is the main cash crop produced in Punjab.
  • Groundnut, Sugarcane and Potatoes are among the other important crops .

Banking and Finance

For a continuous economy of the state , an efficient system of banking and finance is required. There are some important features that can make this sector more efficient: 

  • Proper trading
  • Specialization of production
  • Professionalism
  • Savings
  • Efficient use of resources
  • Risk-taking

Forestry and Wildlife

Forestry and Wildlife are major component of the natural resources. Punjab shares an important portion of the forestry and wildlife of India.  Punjab forestry and wildlife is mainly restricted to the following vegetation types: 

  • Coniferous Forests
  • Scrub Forests
  • Range Lands
  • Irrigated Plantations
  • Riverine Forests
  • Canal Side Plantations
  • Roadside Plantations
  • Rail side Plantations
  • Miscellaneous Linear Plantations

Industry and Infrastructure

Punjab is now giving more importance to Punjab’s industry and infrastructure. Industry and infrastructure of a country or a state helps in economic growth.

Punjab is majorly an agrarian economy that have a poor industrial output. This is due to the shortage of the fundamental minerals. Small-sized industrial units  are particular characteristic of the industrial scenario of Punjab.

The most important industries of Punjab are: 

  • Agro-based industrial units e.g. food products, beverages, cotton, wood and paper industries.
  • Machinery units
  • Chemical units


Punjab is well known to the world for its immense wealth of livestock. Punjab houses the world famous Nili-Ravi buffalo and Sahi-wal cattle. The livestock in Punjab includes other cattle breeds that are :

  • Dhanni
  • Dajal
  • Rojhan
  • Kundi buffalo
  • Red Sindhi
  • Tharparkar
  • Kankraj
  • Bhagnari
  • Lohani cattle
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